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ACGA Blog: Indonesian governance framework creaks amid concerns of government meddling

Indonesia is enduring a rough year in governance. After the MSCI market shock in January, when the index provider unexpectedly threatened to downgrade Indonesia to frontier market status, due to persistent problems: tiny minimum public floats and beneficial ownership transparency, the market fell precipitously. Swift moves from Indonesia’s Financial Services Authority (OJK) and the Indonesia Stock Exchange (IDX) to address the problems via hastily introduced rule changes, have failed thus far to convince MSCI that the problems have been solved. MSCI has postponed its final decision on any reclassification of Indonesia’s market until November, writes Christopher Leahy, Specialist Advisor, Southeast Asia, ACGA. Read more here.